Core Insights - The report titled "2025 China Game Overseas Guide - UK Edition" was jointly developed by Gamma Data and the China Audio-Video and Digital Publishing Association's Game Working Committee, providing a comprehensive analysis of the UK gaming market for Chinese game companies looking to expand overseas [1][2]. Group 1: UK Gaming Market Overview - The UK gaming industry is a key pillar of the digital entertainment sector, contributing significantly to the country's cultural soft power [2]. - The market size peaked at £4.9 billion (approximately ¥46 billion) during the COVID-19 pandemic in 2020, reflecting a 29% year-on-year growth compared to 2019, and accounted for about 50% of the digital entertainment industry [2][6]. - In 2024, the UK gaming industry is projected to be worth £4.6 billion, making it the second-largest gaming market in Europe [6]. Group 2: Market Segmentation and Trends - The console gaming segment remains the largest in the UK, holding a 51% market share, while mobile gaming is steadily increasing, accounting for 34% [11][13]. - The mobile gaming market has shown consistent growth over the past five years, with a market size of £1.58 billion in 2024, driven by a high willingness to pay among younger players [17][25]. - Casual gaming genres such as puzzle, gambling, and strategy dominate the mobile gaming market, collectively accounting for 53% of revenue [19][21]. Group 3: Tax Incentives and Compliance - The UK has implemented a video game tax relief policy, allowing companies to claim a 34% tax deduction on qualifying expenditures, with over £5 billion in tax relief provided since its inception [7][8]. - Compliance with regulations such as the General Data Protection Regulation (GDPR) and the Online Safety Act (OSA) is essential for game developers operating in the UK [45][46]. Group 4: Player Behavior and Preferences - Over 62% of UK gamers identify as casual or light gamers, indicating a preference for simple and accessible gaming experiences [31]. - The smartphone is the most popular gaming platform among UK players, with a 36.2% preference, highlighting a shift towards mobile gaming [33]. - Female players tend to favor casual genres like puzzle and life simulation, while male players are more inclined towards competitive and strategy games [35]. Group 5: Marketing and Localization Strategies - UK players prefer "cold humor" in game narratives, contrasting with the more exaggerated "hot humor" typical in American media, suggesting a need for culturally sensitive storytelling [37][38]. - Recommendations for new games primarily come from friends and gaming influencers, emphasizing the importance of community engagement and local marketing strategies [40]. - Social media platforms like TikTok are gaining traction, especially among female users, indicating potential for targeted marketing campaigns [41].

Core Insights - The gaming industry is witnessing a shift towards casual and mid-core games, with Lemon Microfun emerging as a significant player in the overseas market, particularly with its game "Gossip Harbor" ranking third in revenue among Chinese mobile game publishers [1][3][16] - Lemon Microfun's success is attributed to its focus on female players and engaging storytelling, which has led to high player retention and monetization [6][15] Company Overview - Lemon Microfun, established in 2008, initially focused on casual games and has evolved to target the overseas market with a strong emphasis on "merge" games [8][14] - The company has launched several successful titles, including "Gossip Harbor" and "Seaside Escape," which have generated significant monthly revenues, contributing to a total estimated monthly revenue of nearly 400 million yuan from these two games alone [3][15] Market Trends - The casual gaming segment is experiencing rapid growth, with the "merge" game genre seeing a 106% increase in revenue year-over-year, reaching approximately 515 million USD in 2024 [14][16] - The overall landscape for mobile game publishing is shifting, with traditional heavy-weight IPs like miHoYo's "Genshin Impact" showing declining revenues, indicating a potential market saturation in that segment [16][18] Marketing Strategies - Lemon Microfun employs targeted marketing strategies, focusing on female audiences through engaging short dramas and interactive social media content, which has proven effective in user acquisition and retention [7][20] - The company has also been cautious with its marketing expenditures, contrasting with competitors who have significantly increased their promotional budgets [20] Competitive Landscape - The competition in the casual gaming market is intensifying, with new entrants quickly rising in the revenue rankings, necessitating continuous innovation from established players like Lemon Microfun [20][21] - Despite its recent successes, the company faces challenges in maintaining its competitive edge in a crowded market, particularly with the launch of new titles like "Spicy Restaurant" [21]